Nigeria: CBN Supplies Forex Market $195m to Lift Naira

The Central Bank of Nigeria (CBN) on Tuesday gave a lift to Nigeria’s local currency the naira with a fresh supply of 195 million dollars to the foreign exchange market.

The measure had a resonating effect on the Parallel market as the naira gained some grounds against the US dollar, exchanging for N452 as against N455 on Monday.

The CBN acting Director, Corporate Communications, Mr Isaac Okorafor, who gave a breakdown of the release, said 150 million dollars went to wholesale auction.

He said that the remaining 45 million dollars went for medicals, tuition, Personal and Business Travel Allowance.

Okorafor said that the Bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

He said that banks were becoming saturated with foreign exchange, as most of them were now able to meet demands within the stipulated time frame.

“As you can see all the pent-up demand for invisibles have been met, to the extent that banks are urging customers to come and obtain forex,” he said.

Okorafor reiterated the bank’s determination to continue to fund the importation of raw materials, plants and machinery for manufacturing, agriculture, and other eligible items.

He also assured that the apex bank remained resolute in ensuring stability in the forex market by keeping an eye on the activities of authorised dealers in order to ensure sharp practices were reduced to the barest minimum.

CBN had in the past two weeks pumped over 1.4 billion dollars into the foreign exchange market to stem liquidity challenges faced by businesses and individuals.

Last week, the regulator pumped 170 million dollars into the foreign exchange market, as foreign reserves hit 30 billion dollars.

Meanwhile the Naira continues to firm up against the dollar at the parallel market. The Naira today traded at N452 to a dollar as against N455 on Monday.

Compared to Monday’s sales, the Naira has also appreciated against the Pound Sterling, trading at N540, while it fell against the Euro trading at N475 compared to the N470 it sold for on Monday.

At the Bureau De Change (BDC) window, the Naira continues to trade for N399 to a dollar, while the Pound Sterling and Euro change for N580 and N525.